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HomeMy WebLinkAbout0644 E3oROwer and L,ender coveoant and aRree as followe: 1. Payment of Pri~cipal and lntereat. E3orrower shall promptly pay whe~ due the principal of and intemst on the indebiednese evidenced by the Note, prepayment and late charges as provided in the Nute, and the principal of und interest on any F~ture Advancee secured by thie Mortgage. 2. Ftinds for Ta:es snd lneurance. Subject to applicabie luw or tu a written waiver by l.ender. E~rrower ahall pay to Lender on the day monthly instaltmenta of principal and intereat are payable under the Note, until the Note is paid in tull, a aum (herein "Funda"} equal to one = twelfth of the yearly taxea and aaseasmenta which may attain priority ove~ this Morigaqe, and ~ound renta on the Pn?perty, if uny, plus onr~ ; twelfth of yearly premium inatailments for hazard inaur~+nce, plua unetwelfth ofyearly premium instullmente for mortgage inaurance, if any, all aa reasonably estimated initially and from time to time by l.ender on the basis of asaexsmenta nnd bills and reasonable ealima/es therc~f. The ~nds ahall be held in an institution the deposita or accounte of which are inaured or guaranteed by a Federal or State aqency (including I.ender if Lender ia auch an inetitution). Lender ahall appiy the Funds to pay said taxea, seu;eaxmenta, ineurance premiums and qmund rents. l.ender may not charge for ao holding a~d applying the Funde, analyzing snid account, or verifying and cumpiling said aeeessmente and billa, unlese Lender peye Eiorrower intereat on the Ftinda and applicable law permits I.ender to make such a charge. E3orrower and l.ender may agree in writing at the time of eaecu~on o! thie Mortgage that intereat on the Funda ehall be paid to Borrower, and unleas auch agrcement is made or applicable law requires auch intereet to be paid, I.ender ehall not be required to pay Borrower any intereat or earnings on the F~nds. l.ender ehall give to Borrower, without charge, an anaual accounting of the H unda ahowing credita and debits to the • Funda and the purpoee for which each debit to the Funda was made.'l~e Fund~ are pledged ae additional eecurity tor the auma eecured by thie ~ Mortgage. If the amount of the F'unds held by [.ender, together with the future monthly inatallmenta of Funda payable prior to the due datea of taxes, asseeamenta, inaurance premiuma and ground renta, shaU excaed the amount required to pay said taxea, aseenamente, inaurance premiums and ground rente aa they fall due, such excesa shall be, at Borrower'a option, either ptomptly repaid to Borrower or credited b Borrower on monthly inetallmente of Fl~nda. If the amount of the Funde held by I.ender ahall not be sufficient to pey taxes, aaaesements, insurance premiume and ground renta ae they fall due, Borrower ahall pay to l.ender any a~nourtt necesaary to ~nake up the deficiency within :i0 daya from lhe date notice is mailed by I.ender to Borrower requesting payment thereof. ~ Upon payment in full of all suma secured by this Mortgage, I.ender sfiaU promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property is aold or the Yroperty is otherwiae acquired by I.ender, l.ender shaU apply, no laTtr than immediatel~ prior to the sale of the Property or its soquisition by Lender, any Funds hetd by I.ender at the time of application aa a credit ag~inst the suma secured by thie Mortgage. , 3 Applieation of Payments. Unleae applicable law pruvides otherwixe, all paymenta+ received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by Lender firRt in payment ot amounts payable to l.ender by E3orruvrer under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then lo intereat and principal on any Future Advancea. 4. Chargea; Liene. Borrower sha11 pay all taxes, xssessments and other charges, fines and impc,.sitiuns attributable to the i'roperty which may attain a priority over this Mortgage, and leasehold paymentts orground mnts, ifany, in the manner provided under pnragraph'l hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thermC E3orrower ahall prompily furniah to I.ender all natices of amounts due under thia paragraph, and in the event Bnrrower ahali make paymenl directly, Born?wer ahall promptly furnish to l.ender receipte evidencing such paymenta. E3ormwer ahall promptly discharge any lien which has priurity uver this &iortgage; provided, that Rorrower ahall not be required to discharge any such lien so long as E3orrower shall agree in writing to the payment of the obligatiun secured by ,uch lien in a manner acceptable to l.ender, or shall in good faith contest such lien by,ordefend enforcementufsuch lien in, leKal proceedinKs w•hich operate to prnvent the enforcement of the lien or forfeiture of the Property or any part thereof. 5_ Hezard Ineurance. Borrower ahall keep the impmvementa now exiating or hereafter erected on the Property insured against loas by fire, hazarda included within the term "extended coverage," and guch other hazards as I.ender mav require znd in sach amoants and for such periods as Lender may require; provided, that Lender ahall not require such rnverage amount exceeding the minimum, as may be required by state or federal regulationa goveming activities of I.ender, or that amount of coverage required to pay the snms aecured by this Mortgage, whichever ia the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject k~ approval by t.ender; pruvided, that such :~pproval shall ~not be unreasonably withheld. All prrmiums on insurance ~wlicies shail t~e paid in the mannrr pmvided u~der p:~r.?Kraph 'l herrof or, if not ~?aid in such manner, by Rorrower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewals thereof ahall be in form acceptable to E.ender and ahall include a atandard mort~age clause in favor of and in form acceptable to I.ender. I.ender ahall have the right to hold the policies and renewals thereof, and I3orrow•er shall promptly furnish to i,ender all renewal noticea and all receipta of paid premiums. In the event of loea, Borruwer ahall give prompt notice to the insurance rarri~r ! and Lender_ Lender may make proof of ioas it not made promptly by Rorrower. i Unlese Lender and Borrower otherwise agree in writing, inaurance proceeda ahall be app?ied to restoration or repair of the F'roperty € damaged, provided such reatoration or repair ie economically feaBible and the eecurity of this Mortgage ie not theteby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Morigage would be impaired, the inaurance proceeds ahall be applied i to the aums eecured by this Mortgage, with the e:cess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 daya from the date notice is mailed by I.ender to Borrower that the insurance carrier offers to settle a ciaim for ! ineurance benefite, Lender is authorized to collect and appiy the inaurance proceeda at Lender a optinn eithe- to restoration or rnpair of the ~ Yroperty or the aums secured by this Mortgage. Uniess Lender and Borrower otherwise agree in writing, any such application uf proceeda to principal shall not extend or postpone the due ~ date of the monthly inetallmenta referred to in paragraphe 1 and 2 hereof or change the atnount of such inatallmente. If under paragraph 18 hereot the Property ie aoquired by I~ender, all right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeds ; thereof reeulting from damage ta Property prior to the sale or acquieition ahall pass to Lender to the extent of the auma secured by this ~ Mortgage immediately prior to such sale or aoquiaition. ~ 6. Preservation and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ; provisions of any lease if thie Mortgage is on a IeasehQld. If thie MortRage ie on a unit in a condominium or a planned unit development, ; E3orrower ahall perform all of Rorrower's obligationa under the declaration or covenante creatingor governinq the condominium or planned ~ unit development, tFie by-lawa and regulationa of the condominium or planned unit development, and conetituent documents_ If a ~ condominium or planned unit development rider ia executed by Bormwer and recorded together with this Mortgage, the rnvenanta and' ~ agreementa of euch rider shall be incorporated into and ahall amend and eupplement the covenanta and agreements of this Htortgage as if the ~ rider were a part hereof. 7. Protection of I.ender'e Secnrity. If Borrower fails to perform the oovenants and egreemente rnntained in thie Mortgage, or if any ~ action or proceeding ia commenced which materiaUy affecte Lender a intereat in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode en[orcement, or arrangements or proceedings involving a bankrupt or deoedent, then I.ender at Lender's option,upon ~ notice to Borrower may make euch appearances, dieburee auch aums and take auch action as is neceesary to pmt~ect Lender's intereat, ~ including, but not limited to, dieburaement of reseonable attomey'a fees and entry upon the Property to make repairs. If Lender required ; mortgage inaurance as a condidon ot making the loan eecured by thia Mortgage, Borrower ehall pay the premiums required to maintain auch ineurance in effect until such time ea the requ'uement for euch ineurance terminates in accordance with Borrower's and Lender s : ~ written agreement or applicable I.aw_ Borrower shall pay the amount ot all mortgage insurance premiums in the manner provided under ~ paragraph 2 hereof. Any amounte diaburaed by Lender pereuant to thia paragraph 7, with intereet thereon, ehall became additional indebtedneas o[ = Fiorrowrr eecured by thie Mortgage_ Unleee Borrowet and Lender agree to other terme of psyment, auch emounts ahell be payable upon ~ notice from L.ender to BoTrower requesting payment thereof. and shall bear intereet from the date of diebureement at the rate payable from ~ time to time on outaianding principal under the Note unleea payment of interest at euch rate would be oontrary to applicable law, in which event such amounta ahail bear intereat et the higheet rate permie~ible under applicable law. Nothing rnnkained in this paragraph 7, ehall ~ require Lender to incur any e:penee or take any action hereunder. A ~ ; . 311.,,~: 643 s ~